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Importance of Employing an Accountant in a Small Business
Business is an entity that works to make and sell products or services for a profit. When one starts business there are various staff that must include in the day today learning of the business. For a small business to run well it needs an accountant. Money management of a business is done by an accountant. The accountants makes sure that the businesses run smoothly for a long time by managing finances. This document will outline the importance of having an accountant for a small business.
Accountants will help in opening a bank account for the business and manage it. When small businesses open, it is important that they have business account for business transactions only. Business finances and personal finances should not be mixed.
Tracking of business expenses is done by the accountants. Tracking inflows and out flows of cash Is important. The accountant keeps the records of money in and money out. They are also able to advise the business on proper expenditure thereby preventing over expenditure. Accountants are very important since they help the business not collapse due to over spending.
Accounts department comes up with a way to run business finance smoothly by developing a bookkeeping system. This system help in organizing business finances. Its easy to know the activities of the business without having to check each activity. Book keeping system saves time and effort. Auditing the business becomes easy.
Payroll is organized by the accounts department. HR and accountants work together to ensure employees are paid in good time. The business is safeguarded from legal matters by calculating all the deductions necessary. The government is paid the remittances from the deductions by accountants on behalf of the business. Without accountants there is no smooth running of the human resource especially when payments are concerned.
Accounts department is important since they help file and make tax returns. It is common knowledge that failure to make tax returns is an offence that may lead closure of the business. Tax owed to the government is calculated and paid by the account department. They also ensure they do the monthly and yearly tax returns. The business is advised on tax matters such as tax relief and discounts by the accountants.
Businesses are started with the aim of making profits. This is the key reason why businesses whether big or small are opened. The calculation of profit margins is done by the accountant. Gross profit is also calculated by deducting the business expenses. Whether the business in in profits or losses , accountants will be able to tell and advise the business owners on the next step.

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